Chapter 4 Long Term Financial Pa ring and Geownh S&S AIR, INC. ncome Statement $36,599,300 Cost of goods sold 26,669,496 Other expense 640,200 S 3,648,604 nterest 573,200 Taxable income 3,075,404 Taxes (40% 845.242 Dividends S 560,000 Add to retained earnings 1,285,242 SBS AIA, INC 2011 Balance Sheet Assets Liabilities and Equity Cument assets Current labia ties 396,900 Accounts payable Accounts 637,560 Notes payable 1,928,500 Inventory 933,400 Total current liabilities 2,773,060 Total current assets S 1,967,860 Long-term debt 5,050,000 Fixed assets $15.4 Net plant and equipment Shareholder equity Common stock Retained earnings 9,233,930 9,556,430 $17,379,480 Total assets 317.379.480 Total liabilities and equity QUESTIONS ived assets must be creased c amounts be l. Calculate the internal growth rate and sustainable growth cause it is impossible. as a practical matter. to buy part rate for S&S A hat do these numbers mean of a new plant or machine. In this case, a company has a 2. S&S Air is planning for a growth rale of 12percent next or "lumpy" fixed cost structure. Assume S&S year Calculate the EFN for the company assuming the Air is currently producing al 100 pe capacity. As a company is operating at full capacity, Can the company's result Io incrcase production. the company must set up sales increase at this growth rate? an entirely new line at a cost of S5.000.000, Calculate 3. Most assets can be increased as a percentage of sales. For the new EFN with this assumption. What does this imply instance, cash can be increased by any amount, However, about capacity or the company next yea